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  FOX Business    Markets Now    News/Business.  
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    September 6, 2012
    11:00 - 1:00pm EDT  

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i am mr. generosity and i'm giving you a dow up 237 points, go. connell: you have done it again, thank you very much. dagen: thank you. i am dagen mcdowell. connell: and i am connell mcshane. first, bill clinton last night, now better-than-expected news on the economy. but president obama have something to brag about in the speech tonight? former reagan advisor art laffer here to tell us where he thinks the economy really is. dagen: look at the dow go, 238-point gain right now. connell: amazon about to unveil the latest attempted ipad killers we will be live outside that event taking place today. dagen: good luck with that. top of the hour, stocks now and every 15 minutes. we are in rally mode, nicole, at
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the new york stock exchange. nicole: we are. the dollar was stronger when the opening bell rang and we were already taking off and now lower. coming back on what we have been hearing from the ecb. with that we see the market now really taking off as the dollar moves more to the downside, the dow up 243 points, a great day on wall street. looking at goldman sachs, all the financials are doing really well. thanks to jpmorgan, we have some headlines on goldman sachs. the u.s. appeals court revising some claims against goldman sachs on the mortgage security that it under road. basically digging up some old ideas and claims that could move forward, so they are back, they are alive.
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goldman sachs still a little bit up on that headline. back to you. dagen: the european central bank came out this morning and said they would step up and buy the debt of troubled m nations like spain. they will have access to ecb credit lines. and then the big dog making a big splash last night, president bill clinton trying to work his magic in the democratic convention in charlotte and he took on the question are you better off than we were four years ago? >> when president barack obama took office, the economy was in freefall, we were losing 750,000 jobs a month. are we going to go to that today? the answer is yes. dagen: art laffer joining us from nashville.
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what he said was true, that is roughly how many jobs we were losing when president obama took office. >> he is right, he is right. george w. bush was a pretty bad president, and clearly the comparison of obama with w. is not appropriate, w. was terrible. romney is not w., his plan is far better so the question should be whether we will do better with romney or obama. just remember, i voted for bill clinton twice. i thought he did a terrific job. dagen: i actually had a conversation off air with somebody who said when he brought up that nobody could have fixed this economy.
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>> that is ridiculous, he could have fixed it. ronald reagan could have fixed it easily. jack kennedy could have fixed it. a lot of presidents historically that could have fixed it. obama couldn't fix it, bush couldn't fix it, but there are good policies out there that take the view of removing government rather than putting more government in. the whole issue is you want a low rate, flat tax like simpson-bowl. low rate, flat tax, sound money, free trade and minimal regulations. repeal dodd-frank and stand back and watch it take off. bill clinton during his eight years in office cut government spending as a share of gdp by more than the next for best
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presidents in the u.s. history combined. clinton removed government, did not put more government in. dagen: you will not find a bigger nerd, a bigger dork than me. i love talking about numbers. i was going through spreadsheets of the unemployment rate going back to the 70s, but i want to know, republicans do, democrats do, what is the most important number because we have a massive market rally today. the market is up significantly under president obama up roughly 50% on the dow. we have an unemployment rate, very similar to what ronald reagan experienced in his first term in office. i look at the unemployment rate. closer to 7% when ronald reagan took office, and when the voters
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went to the polls it was back down to roughly the same amount about 7.4%. that is what has happened under obama. i found where it was when he took office. >> all partisanship aside, the recovery under obama from this recession, great recession is worse than the single next worst recovery in history. on january 11983, growth rates were in the five, six, seven, eight, 9% ranges on a quarterly basis. employment increased dramatically during that time. that hasn' has not happened with president obama. i wish it had, but it hadn't. if you look at any of these variables being really critical like gdp, unemployment, they have not kept up. the worst recovery in the u.s.
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that is the way i would compare it. he is the president and i wish he had done a lot better but don't think he is doing the right policies. i never heard of anybody taxing and economy into prosperity. i have never heard of a poor man spending himself into wealth, it just doesn't happen. that is where we are. i think obama is a great person and an american success story but not as president. dagen: great to see you, thank you. take care. connell: a little different perspective now, we think. tonight the big night for president obama in charlotte, but a pretty good lead-in for him, tomorrow we will have the big government jobs report. former press secretary for al gore. he looked at the stock market today, s&p 500 at the highest level of the obama presidency.
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bill clinton made the argument last night nobody could have led this economy out of the depths of where we were. how does he articulate that? it could have been much worse. >> the first thing he will do is build an incredible momentum starting with michelle obama on tuesday night, the strongest possible turn, the personal case for reelecting the president and president bill clinton last night that laid out the policy. being blessed by having a very engaged emotional audience there in charlotte and lay out his vision for the economy which is one that really builds the middle class out, and says the wealthiest among us, help to pay a little bit more.
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>> they were very enthusiastic audience, no doubt about it. but you would think they would vote for the president. how does the president make his argument to them tonight, what does he say other than we would have been off th a cliff, or i saved them from a depression. we can get worked up about the markets today or the jobs report, but 8% plus unemployment is not great out there. >> the reports today on the report we are probably expecting tomorrow has the potential to really be in exclamation point at the top. one thing they have done is use the very popular circuit like president bill clinton something like 70% approval rating across parties and have them emphasize
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these messages of compromise and corporation of the party. connell: this applies to last week because paul ryan took a lot of heat accused of stretching the truth at some of his remarks about the auto plant and everything else. the fact checking has begun for the democrats looking at the romney tax plan never said he would raise taxes for middle-class and some people looked at the remarks last night about the "washington post" $4 trillion in deficit reduction and said not really, common things already in there like winding down the wars and everything. do people believe what is being said at these conventions? how much can it hold up the argument? >> i think there is a historic level of distrust in politics right now, congress has a 12% approval rating. i do believe one thing president obama has in his favor as he continues to have very high personal approval rating because people approach him on the issues.
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we will use this time to lay out his case to remind people about the administration. everything from the killing and capture of usama bin laden to health care reform, et cetera. i think he will have a great time. connell: thank you very much joining us from d.c. appreciate it. dagen: as president obama takes the stage tonight, neil cavuto joins us from charlotte with what the president needs to accomplish. connell: ashley webster in frankfurt, the bond buying out of europe driving the market along with our economic data. but first before we get to that, we know the stock market is up, almost $97 per barrel. we will check all the numbers,
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nicole: all 30 names in the dow, apparelsup arrows, retail, all s across the board. i wanted to take a look at verafone coming-out missing analyst estimates. below for the fourth quarter, a buyer that hit their numbers, but you can see the stock down 11% today. back to you. dagen: president of the european bank announcing a widely anticipated program. step in and buy the bonds of countries in europe that are struggling with their debt trying to keep those soaring. connell: ashley webster is covering it in frankfurt germany today with more. ashley. >> interesting thing is there's absolutely no limit to the number of bonds that will be bought up to three years
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maturity according to the german president. saying it goes a lot farther than the two bond buying programs and it will create a fully effective backstop. it is called outright market transactions and it goes farther. the country wants help from this program have to officially requested. they will be subject to strict conditions in those conditions will be monitored by the imf. all this comes as the euro zone economy continues to struggle. >> it is expected to remain weak. with the ongoing sanctions and financial market and heightened uncertainty weighing on confidence and sentiments. >> well, certainly remarks of confidence as a big issue for
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the euro zone. with the spanish ten-year yields drop as a result of this down close to 6%. all eyes will be on spain under the assumption they may need a bailout. the question is how much and are they willing to undergo the kind of conditions outlined today? the announcement that wasn't expected in the market as you say like it very much. connell: in a rally right now, ashley webster live from frankfurt. dagen: however, could china throw a wrench into any economic recovery here? if they slow down over there much worse than we thought? coming up to talk all about it. connell: president obama will take the stage tonight at the convention. neil cavuto, great job covering it for us and we will be live on "markets now" from charlotte. next. take a look at how the currencies are faring against the dollar.
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a move in the dollar and how it relates to stocks, we are up with the stock market and the euro against the dollar. [ male announcer ] let's say you need to take care of legal matters. wouldn't it be nice if there was an easier, less-expensive option than using a traditional lawyer? well, legalzoom came up with a better way. we took the best of the old
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>> 22 minutes past the hour, a dallas bound jet was apparently rerouted back to philadelphia because it appeared to be a situation of a hoax. the flight had been cleared by the fbi after authorities received a tip of a suspicious passenger. it appears it was a hoax. meantime a fishing boat carrying illegal immigrants to europe sank hitting rocks off the coast of western turkey. several dozen survivors were able to swim to shore. the sports world mourn the loss of former cleveland browns and baltimore ravens owner. he moved the browns to baltimore to bring the nfl into the modern tv air. he died of natural causes and was 87 years old. those are your news headlines on the fox business network.
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notice those kind of all over the place? the prompter went out, it is like dead now. dagen: that was a major save. i will buy you a coca-cola for that. >> thank you. dagen: the market soaring. take a look at how the market is doing awfully har high for the session. again, the head of the ecb delivering the central bank will step in and buy bonds galore, unlimited supply with the nation's debt ridden keeping interest rates relatively low. you name it, we have a market rally. connell: last night was bill clinton speaking at the democratic national convention, but his wife, hillary clinton, watching halfway around the world overseas meeting with the chinese president.
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our next guest was just in china saying they slow down there could be a problem here. back in d.c. now. what did china look like, very bad? >> about a different point of view. the chinese government itself thinks it is pretty bad. the central government is actually requiring the cities to provide the stimulus at a city level so it must be pretty bad. if i talk the business owners, they're worried, looking at inventory not being able to move, so they're worried about the growth of the economy. and china, talking to the workers, the general public, there are little bit concerned with the housing prices seen a
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bubble and concerned with inflation. connell: i'm sure the president will try to argue our economy is at least getting better slowly. the market up for whatever it's worth over 200 points on the dow. >> china is the world's largest economy. gdp 7.45 trillion. china really slows down substantially, of course it will have a major effect on the world. and look at the tim timing partf it, the u.s. is barely hanging on. the real slowdown in china will affect our market. the funny thing is before my trip i know china is slowing
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down, but wha when i am there im thinking i totally ruled it out, now i'm thinking there is actually a possibility of it. if that does happen to not be good for the world economy. connell: don't forget about china. thank you for talking to us today. dagen: after hearing from former president bill clinton last night, delegates await president obama speech tonight. we'll "cavuto" joining us from the dnc with a preview. connell: and easy list to put together, everything is up. the market, the s&p 500 at a four-year high. we asked over 3,000 doctors to review 5-hour energy
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that doesn't taste gluten free. together, the elements of science and the human element can solve anything solutionism. the new optimis dagen: it is the bottom of the hour, stocks now, and major market rally on our hands. all three of the big market gauges are significantly higher. up one and three quarters of a percent, all three dow, nasdaq, s&p, lot of good news to report. jobless claims lower than expected, the ecb, free money everywhere. the service sector picking up steam last month. a lot of good news. connell: the bond buying program out of europe, the breaking news of the hour is the closing for the day of the european markets responded with some pretty strong gains, almost 3% in paris
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and frankfurt, germany. big-time rally. a big rally for stocks. dagen: speaking of our markets, the highest point during the administration so far. >> heartiest in which the republican argument in private capital, this president spending billions more of your money and has not yielded the results. >> here's what i say to that. if in fact you're creating job shares, that is good. if you're spending money
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overseas, that is bad. here is our biggest challenge, neil, used to be corporations have the same interest for our company, they were aligned. connell: this is an even bigger and wider message from mr. trump in your interview. >> to a man or woman they stand by spending. it has helped the economy, rather run away from it. they are fully embracing it. i notice of the convention that has been intent on fact checking republicans, not so eager out of republicans trying to fact check the democrats including bill clinton's speech last night. as we tried to clarify afterwards a number of the remarks were simply not right. we tried to pick it apart last
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night over the noise, but one that particularly caught my ear. thanks to the health care law, health care costs have come down. that is just wrong. a lot of that has to do with the recession. it will grow when the american economy is lousy and leaves out conveniently insurance premium rises. if you factor that out, it is not as bad. it is not such a problem. i'm not saying that to belittle the former president, statistics are funny things and can be used on both sides. but i do find funny is how a lot of them are just bill clinton gets it done, barack obama is
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saving the heavy lifting. what is interesting when bill clinton talk about mixed republicans get their facts right i don't know if republicans are just clearly fearful but they are not taking bill clinton on the same task. dagen: there was an article that he went through even more numbers, things bill clinton said that for an actress like the spending cuts or deficit reduction. to that point, watching the convention, he is very much like a preacher down south. are they appealing only to the base? when people hear something like health care inflation is check repai,the american people know s not true.
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do you think he is talking to the base, but will the president be able to reach anybody other than democrats? >> i always think the dangerous republicans have to address this, we sometimes think they're preaching to their own choir. in this case 20,000 plus delegates in that choir and we'll all be sitting for barack obama. you have to get beyond this ro room, i have been to a number of conventions and i remember 1988 with michael the caucus. nearly 23,000, said hugo, michael, you go. bringing bill clinton to the world, long nominating speech. i know what happened, he lost by a big amount. you have to be very careful you're not just preaching to the choir. like me addressing 20,000 guys
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who like chicken wings and say vegetables are stupid and they all stand up, and then you realize 20,000 big guys who are endorsing my view on chicken wings. to make a point, to preach to your crowd you risk alienating the larger audience. they sometimes are thinking this message resonates beyond the hall. it might not. connell: you are talking about republicans have not fired back at clinton. it is a weird year because the conventions are literally back-to-back. it was right to the democrats and we have not seen at all this week paul ryan out debating, do you think that is a mistake and he should be making himself more visible? >> they risk a tradition the opposition party lay low and each party holds its convention.
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those rules are going by the wayside here. i think this is only the second time in the past century we have had them literally back-to-back like this. there isn't much chance to get bang for your buck. we might go back to where we were before the convention began. i do think in the end it will be the economy that decides it. it will be the argument do you think the trend is your friend. clearly this administration, democrats saying let's move the calendar up a little bit. are you better than where you were in february 2010, because that is where the recovery took hold, the jobs growth and to your point about the "washington post" article today, that is what it is alluding to. february 2010 at the time the obama recovery started ignoring
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the year before that. you can play with these statistics all you want. traditionally we judge jobs from january 22 when you step in. you saw the very good adp report today, the weak manufacturing data this week, it will be that trend and it will be if the jobs growth that we have seen is more appreciable. if it is not, all the whooping and hollering and the chicken wing rally isn't going to change it. connell: tomorrow after the president speaks. as always, we will watch tonight. dagen: i vote for chicken wings. >> you cannot relate. connell: i love chicken wings. >> you will find plenty of friends here.
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dagen: that is a great lineup. just making stuff up, neil. connell: thank you, neil. dagen: thank you so much. amazon ceo says take center stage in a short time from now. unveiling a new line of ereaders. connell: and a hall of fame quarterback coming in. the perfect dolphins. he has a book about it. keep it here on "markets now." here is a yield for you on the 10-year note. we have big dreams.
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producing natural gas. it's not a dream. america's natural gas... putting us in control of our energy future, now. >> i am lori rothman with your fox business market him back brace. outlining plans of the ecb bond buying program and in response, the dow is storing up 235 points right now. also good news on jobs growth in the u.s. private sector picked up in august posting the largest gain in five months.
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201,000 jobs were added last month. now the unemployment line also unexpectedly got a little shorter last week. 365,000 people filed for first-time benefits working lowest level in a month. the planned layoffs fell to a 20 month low. all three reports ahead of the august numbers for payroll growth.
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connell: a big story out west expecting to take the stage today revealing the latest version of the kindle fire. dagen: adam shapiro outside santa monica, california. speak what has been tightly controlled, information leaking out about this new device, some reports say it will have an
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android operating system. nokia has not confirmed but reports are in a licensing agreement to provide mapping services to this device and that is what this is all about in the mobile industry when you speak to tech geeks, location and mapping is where all this is heading so this device will have somebody that in some form or another. they sold out of kindle fire last week, smith expected to be the next iteration of that. it is imperative for amazon to continue its push forward into the more commonplace tablet sort of device. can they compete with apple? apple controls 70% of the tablet market. by best estimates, kindle has 20%. but can they hold onto that?
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connell: adam shapiro from santa monica. dagen: stocks down every 15 minutes. why is the market up so big? nicole: obviously out of the ecb and europe printing and making things easy for the banks to borrow and move forward. what we have seen as the euro becoming strong, the dollar pulled back. we see the market celebrating on the heels of some jobless numbers and the initial jobless claims in the u.s. the private-sector jobs both of which came in better than expected. the dow right now, so much to talk about, if the dow closes around this level right here the highest point since 2007 and also got in the number which is the highest reading since may. there's a lot going on here today, all good news. back to you.
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connell: we have a hall of fame cornerback coming up live with us in the studio. the only perfect quarterback in nfl history on his way in. dagen: and you know what we will ask them? how do you fix our jets? from losers to winners today. on the nasdaq.
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dagen: the nfl season kicking
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off last night with that ugly loss to the new york giants. remarks the 40th anniversary of the only undefeated team in history. the miami dolphins. connell: the quarterback of that team has a new book out aptly named "perfection." we can talk about perfection and little bit. what was it about this team specifically? >> the giants are one of my favorite teams down because the giants beat them in the super bowl.
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it is like the coach says, that is why it is so special because there is only one year am not team in the 92 year history of the nfl. we were going through it, were motivated in the loss to the cowboys the year before. we got beat 24-3, and we got hammered. it was never about going undefeated. when we were 6-oh, 10-0. no questions were about going undefeated, all about are you going to win the super bowl? even after we won the super bowl that wasn't hey, we went undefeated. it was glad we don't have to play it again next week and we won the super bowl, world champions. dagen: there are teams that came close but no cigar.
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do you think there will ever be another? >> it'll be awfully tough, increasing the number of games from 14 to 16. and potentially going to 18. if they ever do, i will put out my hand and say welcome to the mountaintop. come brady is a good friend of my son, they went to michigan together at the same time. about five years ago when they were in the super bowl undefeated i said, this was before he got to super bowl when they were about 10-0, 12-0, i said lose one and i will be for you for the rest of the way. connell: everybody remembers you, what stood out about the individuals who make up the collective unit.
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even the defensive lineman, guys like that, jake scott was a fun-loving renegade and free safety. back then, 72, he came up with the idea of situations and substitutions. now you watched that game last night, certain guys on first down. on second down more guys running in a passing situation.
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more guys running short yardage. he was the first guy to come up with situation substitute. he did that with them good the other thing he did was he had something called check with me. check with me. i called two plays in the huddle. after i see the defense a check which way we are going. he is the first one that came up with that. connell: kind of like tony larusso with baseball. thank you very much. we have to run now. dagen: come up with a game plan to rescue the jets. >> and the dolphins.
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dagen: stopped being so soft on those boys. connell: stocks in oil seeing a big gain driving toward the end of the week. dagen: sandra smith has "the trade." >> let's get to these numbers because this is what is moving the energy market as much as we are seeing right now. a drop of 7.4 million barrels. much bigger than expected, very bullish, stocks dropping 2.3 million barrels, this is all tropical storm isaac stronger-than-expected demand a three-month low for gasoline inventories. a jump in about $1.50 right now. a gain of about 26% since last october pushing up the wholesale gasoline prices. your biggest winner, at the same time telling us whether or not the gasoline prices will keep on going higher from here.
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connell: back in a moment. we will be right back. so... [ gasps ] these are sandra's "homemade" yummy, scrumptious bars. hmm? i just wanted you to eat more fiber. chewy, oatie, gooeyness... and fraudulence. i'm in deep, babe. you certainly are. [ male announcer ] fiber one.
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i am dennis kneale. cheryl: cheryl casone. numbers show better than expected private sector job growth as president obama has something to crow about a convention. elaine chao and john lonski. dennis: stocks in rally mode. the european head bank of these guys got in their act together? cheryl: amazon about to unveil its latest attempt at and ipad. how you can play it coming. dennis: stocks every 15 minutes and nicole petallides on the floor of the stock exchange basking in the green. nicole: auld dow 30 component in
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the green. so much going on from the jobs numbers that came out from the government and weekly jobless claims waiting for the big number. and the i s m number saw an improvement and highest reading since may. that is something we are following. let's look at some dow names. all 30 dow components in the green. a handful of names hitting new highs and disney hitting an all-time high. 19 all-time highs this year. cracked seeing highs we haven't seen since 2002. some stellar performance and i cannot leave out what went on in europe bubba. one of the main reasons we're getting the pot with the ec beef falling back short-term bonds to
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ease borrowing costs. cheryl: president clinton at the democratic national convention get a response to are you better off than four years ago. >> when president obama took office the economy was in freefall. it had shrunk 9% of gdp. we were losing 750,000 jobs a month. of the doing better today? the answer is yes. cheryl: a slew of jobs data out may support mr. clinton's claim but will it be a rude awakening tomorrow when we get the august jobs report? joining me is former labor secretary and fox news contributor elaine chao and john lonski, chief economist of moody's. this is going to be a big night tonight. tomorrow, to you think there is a possibility the wet blanket is the august payroll report? >> estimates for job growth is
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better as you mentioned. adp numbers better than expected. we need 250,000 new jobs to be created every month to keep even with population growth. it is a difficult time for the democrats because they come from their convention and get revved up and want to get everybody excited and tomorrow it could be very sobering. >> the iso numbers are quite sobering. the fact that it is below 50 and has been so weak for so long indicates the recovery is not here and we are in danger, at risk of falling back to worse economic times. >> let me -- bring a couple things she pointed out. adp, i called a head make. some time that on with
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government numbers. sometimes it seems like they're on two planets. the last week to months of two stories with adp versus government data. >> we want to remember adp is compiled from actual payroll reports distracted from that and it does have some validity providing us with an indication of hiring activity in the u.s. economy. these two measures move together over time. if we do have a weaker than expected reading on august payrolls the market might look at the adb report. it might look at the job surveys conducted by the i s m that conclude perhaps the labor market isn't as weak as the u.s. government report suggests. that being said the reality is has been stated earlier this remains a subpar recovery both for the overall economy and the
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labour market. we are still down nearly five million jobs from where we were at the start of 2008. cheryl: i can hear the president talking about the breakdown of jobs that were added in august. you know it is coming. private-sector jobs for august, the bulk of it was trawl -- small and medium-sized business. i can hear mr. obama saying we are building small business jobs. small businesses coming back. how are republicans going to refuse that? >> it is not enough. we all want these numbers to improve but what we are seeing is the government's policies are having a dampening effect on job creation because mr. clinton is right. the economy was bad in 2008. it was bad in 2009. for that severe a recession to have occurred there should be a very sharp bounceback and very sharp and quick recovery.
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the deeper the recession the quicker the bounce back and that is not happening. is not happening because of the entire employer and tied business policies enacted by this senate and the administration. the avalanche of regulations is having a severe dampening effect on job creation. stuart: how are you feeling about your estimates tomorrow? >> we are going to go ahead and see 150,000 new jobs created over all. 160,000 in the private sector. the unemployment rate at 8.3% and that is too high. cheryl: good to have you both. thank you very much. dennis: consider this inconvenient truth. democrats attack met romney as corporate vampirebut democrats have invested big-time with bain
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capital and made money. liz macdonald is here with the bottom line. liz: we will show the names and they will come down on a scroll on the screen and we are seeing union foundation's and universities normally associated with democratic causes have invested since 2000. 1$.6 billion you will see here. the oprah winfrey foundation, university of california on and on. we are seeing what we were in touch with, the data provider for this information, they got this from public filings and freedom of information iraq -- 3 -- institutional investors themselves. the private equity sector is $3 trillion in assets under management. you would expect democratic weening groups might be investing with private equity notably bain capital. dennis: they're running behind
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on obligations and need to double and triple usual returns and they do that with private equity and the very end of these democrats, line. liz: essentials both sides of the political aisle, gop meaning causes and democratic groups but this is separate too from criticism against bain capital that they engaged in leveraged buyouts and it is a separate issue. these institutional investors have made money with bain capital. dennis: thanks for a peek at the truth. 20% of the world's adults work full time for an employer according to gallup. in the u.s. 41% of adults over age 15 have a full-time job but in europe the numbers only 32%. middle east north africa 18% and
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in sub-saharan africa just 12% of adults have a job. gallup numbers exclude part-time workers, self-employed and unemployed and those out of the work force stopped looking. cheryl: elaine chao joined us to give us a look at the jobs number. she has been nominated to the board of news corp. which is the parent of the fox business network. is europe finally getting its act together? our stocks are soaring on the program. ashley webster will join us. sent him back to germany. dennis: how the city is recovering from hurricane isaac. it is up big. [ music playing, children laughing ]
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serious investors are choosing fidelity. now get 200 free trades when you open an account. cheryl: asia had a nice update. and the german market having huge base. the german market closing up almost 3% after the european central bank president did announce this morning plans to buy government bonds. ashley webster air in germany to cover this story.
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hello. [laughter] ashley: call me clouds from now on. mario draghi came into his meeting smiling and various beat despite all the pressure he has been under and he just unveiled this bond buying program that is designed to bring down the borrowing costs of countries such as spain and italy. it is called out right market transactions and goes further than the previous couple bond buying programs the ec has rolled out. it has to officially request helped and undergo strict vision but there's no limit to how many bonds can be bought. >> quantitative leaning, we want
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this to be received as a backstop. ashley: and he says it is a fully effective backstop. the kind of move markets are anticipating and we have seen a positive reaction. the rally, the yields come down. the spanish ten year yield close to 6% which is better than the 7% we saw last couple of months. he also says that the pcb is acting in the mandate of its mission but there are critics we heard from his said this is absolutely not within their mandate. cheryl: thank you very much from
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frankfurt, germany. breaking news in fox business from charlie gasparino. charlie is reporting massive layoffs are under way in the united states. hundreds of employees potentially at risk. and telling charlie the equity business has been, quote, decimated. we will get more from charlie gasparino in the next hour of markets. dennis: stocks every quarter hour. chipmakers that both end of the spectrum. nicole: we talk about supply it is the big issue. technology groups, to the downside and a supply warning and you can see down 22% is a huge move to the downside. if you are disappointed in how you have supply ready to go and
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some key beneficiaries both of which are up 8% on this news another thing to note is prices are flat but this could -- benefit from supplies. big picture market outlook a big day. if you have an ira or 401(k) you are pretty happy. lots of new highs. dennis: thank you. gold is hitting a five month high today. phil flynn of price futures group and fox business contributors watching all things shiny. phil: we are seeing silver flying saucer. what are talking about? a saucer bottom in silver. that is what traders are talking about. silver created tactical tops or bottoms which historically is one of the most bullish ever for silver going to the 1970s and always portrays a big move.
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mario draghi sanitized bond buying helped stimulate and finished his formation out today. a lot of freighters calling central bank on an -- money-laundering. a lot of traders betting that silver will taps $37.50 if not $40 in the months to come. gold and silver and platinum are looking to follow this market as well and copper looks like it is on the verge of a break out. gold and bulbs and metal bulbs you got to love mario draghi with the bounce today and may be for weeks to come. cheryl: amazon about to unveil new line of e readers. will they be ipad killers and should you buy into the stock? dennis: air fares on the rise. how you can play it and the third of the world currency fairing and dance the u.s. dollar. all the green arrows mean a doing well and the dollar is not.
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>> your fox news minute. syrian troops took back the town from rebels at a transit point for refugees leaving the
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country. hundreds of soldiers backed by tanks this morning. the rebels had been in control for several months. the remnants of a tropical storm help firefighters make progress in their fight against a blaze that claim 4,000 acres. the california st. gabriel mountains. favorable conditions helped the small community of camp william allowing people to return home. a colorado third grader sent home from school for wearing the no. 18 jersey. the school district has nothing against quarterback peyton manning but the number 18 in that area is associated with the eighteenth street gain. nothing with 89 it can be worn. there you go. that is your fox news minute. should have thumbs-up or thumbs down on this story. cheryl: give me a break. [talking over each other] cheryl: i want to point our viewers to the markets because we have a rally going on and i
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have to point out with the dow we are up 32 points. of the dow can close at 137279 which is the number you're sitting on the screen is the best since september 31st the s&p and nasdaq having their best intraday performance in several years since 2008 and especially the s&p. dennis: a new week for gadgets continue with amazon unveiling the new kindle fire at 1:30 p.m. eastern. our next guest says the latest version will keep amazon in the game but is it and ipad killer? what do you think of the new fire coming out? >> you have to reduce expectations for this device to some degree. it is just a refresh of the kendall fire with a camera and high-resolution screen and the little bigger and you have a mat and refresh the existing models. it is just amazon keeping up in
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that sense. dennis: let's amazon that 22% of the tablet markets in 9 months. and with the ipad many at the $200 price point, will that be a kindle fire killer? >> will make things more difficult for amazon but you have to understand the way amazon has positioned its tablets is as a platform to sell the merchandize that goes through amazon.com. upgrading the screen and putting a camera on it implies more video content. one thing it sells is movies. the ability of the company to sell a nice tablet at an aggressive price is because it is making its money by selling people who have those tablets merchandise from its store. dennis: they have an extra multiplier effect that any i had from apple will not have.
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will that have $600 sales for the ipad over apple? >> it might do a little of that but apple also has access to a lot of content. think of the itunes store. they compete in that area but it should be understood that the fire is not trying to compete against the ipad across the board. just competing in this one area of content distribution. there might be more price cutting going on as a result of this competition so apple is certainly keeping amazon honest in this case. dennis: nokia big new first-ever windows-based -- stock drops 16%. is a nokia dead? should microsoft by them? >> don't know about the 16% drop. these phones were fine. perfectly good looking with nice
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capabilities. microsoft is reluctant to the release price and availability dates that made a lot of people matter. tell us how much it costs and when we can get it and that is bothering a lot of potential buyers and investors. dennis: some say nokia might be a dead man. cheryl: united airlines announced yesterday build low raising fares on domestic flights by $10 on round trips. american airlines and jetblue have not raised prices. the airline is monitoring the situation. look at stocks. on a day with incredible volume at the stock exchange, and they were all moving to the upside. dennis: there a point away from december of 2007 high but what about the ecb announcement?
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how will that affect the fed action at home? cheryl: look at the winners and losers the magic number $14.29. be right back. [ male announcer ] what if you had thermal night-vision goggles, like in a special opsission? you'd spot movement, gather intelligence with minimal collateral damage. but rather than neutralizing enemies in their sleep, you'd be targeting stocks to trade. well, that's what trade architect's heat maps do. they make you a trading assassin. trade architect. td ameritrade's empowering web-based trading platform. trade commission-free for 60 days, and we'll throw in up to $600 when you open an account.
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>> reporter: afternoon. i'm nicole petallides live on the floor of the new york stock exchange. stocks of the 15 minutes from the fox business network. last sigalert. take a look at the major market averages. the dow was up 230 points. a rally. the s&p 500 to my new levels of we haven't seen since may of 2008 on the dow. of 30 names have been in the green all day long to read a lot
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of the estimate from good economic news. gile -- jobless claims, the private sector jobs can good to be the ecb being very helpful and lowering borrowing costs. the home builders and the heels of all of this. home builders in particular looking good, hitting new highs. an mit r. horton, hire. also up over 30 percent right now. certainly some stellar performance. and volume, we should clean up the volume is quite heavy. one of our heaviest days since august 1st, so that shows symbols conviction. dennis: volume up and stocks up. i love that. now, steeple nicolas portfolio manager, he said the markets, all is expecting the news by the ecb, but the wire starts roaring of so i? >> well, a little bit of a fall to today because some of the things that the market was not clear on have come to pass.
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any concern that the ecb might have pointed this out into the next meeting. for example, whatever concerns that might have been, they're gone. the market has telegraphed a lot of this already through the summer. we have had a substantial, particularly in the european equity indexes coming in. dennis: dennis: i remember when secretary paulson talked about a $600 billion bazooka. the ecb to not state the size. is that a good thing or bad thing. >> to have an open-ended commitment gives them more flexibility, but there are some treats attached. it's going to have to have countries, and apply. as to whether spin loop support and formally requested is an open question. there's still some question about the constitutionality of the fm in terms of the chairman part of you. what get information on that. so the devil is in the details. having this open and commitment
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surly as you can see in the market today is a good thing it takes away some of the downside risk tomorrow will be situations . dennis: do you think the rest of a lehman style spurning collapse is now off the table? >> no, but it is certainly left directionally. you have a bank that has some latitude and corporation behind them to go forward. it was very important today that the german chancellor step forward and have some positive comments at the ecb. acting within their mandate. so there is some sense that there is corporation politically, and that is giving the ec be the latitude it needs to shore up the financial system dennis: basically printing new money buying these bonds, said the currency's be down against the dollar today? >> these are sterilized purchases which means that the net neutral effect on the balance sheets.
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it's ultimately directed at getting those short-term yields down and providing some defense for those countries, their yields spiral out of control into a place that is not sustainable. dennis: does it make it easier for ben bernanke and the fed next week to step up? >> i don't think it has anything to do with what will be thinking about next week. what i think he's going to be focused on his inflation expectations and the job market. inflation expectations priced into the bond market are still well above 2 percent in terms of longer-term expectations, so that would make me lean toward not qb. this next meeting. but we still have a very high unemployment rate and obviously that's part of the mandate, to bring that down. look for 150,000 job number tomorrow as the dividing line between whether they get more evidence to push forward for
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have to go the other way. dennis: between laughing and crying. thank you. >> thank you. cheryl: and it's time for your westcoast minute. californians are buying in bulk from amazon before the company starts collecting sales tax on september 15th. after a long drawn-out battle amazon finally agree to start collecting sales tax. according to the l.a. times tech savvy customers are buying everything from tvs to protein drinks and applying -- and are buying in bulk. the maker of greenhouse of products and has just been sold to a belgian company. selling similar products around the globe. and former housewife is starting a female themed stakeouts, account or for fashion shows and smaller plates. the honor of morton's steak house is backing a sell. yes, men are allowed.
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the consumer to nine. that is the west coast minute. dennis: this just in from the red shoes dirae, reason to kick up is very expensive heels. the french shoemaker won his lawsuit against competitor. a u.s. appeals court in manhattan ruling that has bristled is entitled to limited trademark protection. only to a red lacquered our school that contrasts with the color of the rest of the issue and not to shoes that are monochromatic the red. look for a lot of red ripoffs coming out. cheryl: alike issues, but they hurt my feet. they're beautiful. anyway. new orleans, still cleaning up after hurricane isaac. controversy remains of our weather the city was paradors of it at the expense of others. >> it will be nice if there would have put levee protection around our area as well as new orleans. all that it was protect your
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lens. the water had no word ago, so it had to come this way. dennis: and the mayor of new orleans will also be there. he will join us with his reaction to that new war was a shoot and more. first, let's look at the tenure treasury.
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♪ >> reporter: and tracy burns with your fox business brief. the rally on wall street continues, but the s&p 500 has its highs the losses may 2008 to be right now the dow is up 238 points. securities announces a billion dollar cost-cutting effort. according to our own senior correspondent charlie gasparino the layoffs will target equity businesses here in the u.s. with hundreds of jobs potentially at risk. sterling -- the equity business has been decimated. and sales topped the 200 million
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mark in just over three months. the southern korean company says sales of the device for helping it maintain its lead in the smart phone market. as the latest from the fox business network, giving you the power prosper. hey! did you know that honey nut cheerios has oats that can help lower cholesterol? and it tastes good? sure does! wow. it's the honey, it makes it taste so... well, would you look at the time... what's the rush? be happy. be healthy.
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dennis: bill clinton while his democratic disciples in charlotte, but did he out draw the freakish events in in d.c. where cheryl dallas cowboys pilaf afloat to beat the super bowl champions. we will know for sure until late this afternoon when final numbers aren't. this is coming across. when slick the ratings. the first night. romney spoke on the republican side. 22 million. michele obama on the democratic night. she had an 18% larger audience, 26 million.
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as for president clinton, you see how 26 million for michele. the giants claimed to have fans came, closer to 22 million. of the late today. they promised it would get them to us. dennis: bill clinton went on for a long time. but that was a great game. i enjoy very much. i really did. i have to say. overall the networks, the media companies, either way they get a nice boost from last night. dennis: they sure are. cheryl: every 15 minutes. stocks. nicole. and still celebrating in my head. i'm also celebrating the market at 232 points. >> reporter: [talking over each other] tv night indeed. market. an interesting day here on wall street. dow up 30 components in the green. up 17%.
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the nasdaq up to. the s&p at levels we have not seen since 2008. the dow why, if it closes right here around this level will be our highest close since 2007. let's take a look at the financials. a talk about the dow jones industrial average, some of the performers are in the financials, bank of america, j.p. all up arrows. epos 4% today. wells fargo up more than 3%. all this on the heels of good jobs numbers. that will be huge as well as the ecb 80 european struggling economy. let's talk about buying bonds back. that's the market were seeing. the fixes been to the downside. cheryl: nice to see these numbers. all eyes are on europe. he should pay attention to emerging markets. his show us where to invest right now bigger than expected drop in
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oil. tips on how the plan that as well coming up in the big trade. first, take a look at some of today's winners over on the nasdaq. ♪
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cheryl: emerging markets get the best along with u.s. markets after the ecb bond buying announcement. emerging markets are still going to outperform those developed markets, and that includes the united states over the long term . black crack head of institutional businesses here now. even under the elected they would have the dow up to 32 you still tell your institutional clients, go overseas, though
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stay home. >> in general people are investing with a global view, with the nickel few u.s. is actually one area where there has been substantial growth. clients of been investing in the u.s. investing in emerging markets. they have actually been taking a short position more into the developed. cheryl: they're doing it through etf. your big institutional clients, now you can't name them, but bob's mutual fund and obama, whatever, they're telling you that they want to go overseas . as a bet against the united states. >> we have seen. today we received august. as of august tpa flow has been at a record pace. relative to the year prior. we have the flow in august. and out of this area we have seen substantial growth, fixed income. fixed income is actually more
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than doubled. last year year to date. also, last year was a record year. we already crossed that mark. so people are going end to fixed income. people are also going into u.s. equities, and they're going into emerging markets. those are the three areas that actually we have seen substantial presence. and for clients, talking about asset managers command of talking insurance companies. so they're moving. they continue to move into u.s. u.s. has been an area that has grown about 18% year-over-year and sense of growth. the area that has seen the biggest drop is in europe. so with this sense of growth, but we haven't -- we have seen flow into emerging market, but equally we continue to see flow into the u.s. there have been actually, we saw that shift. where seeing that the recovery of the u.s. was happening.
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cheryl: look. i don't want to miss the u.s. market rally. at the same time want to maximize. a from going to do that oversees, that's what i'm going to do. let me get into specific countries. more than several times now on the show, you like mexico, peru. peruvian, so your sticking with that. you also like latin america overall and in chile. so latin-american market, that consumer am assuming is what is drawing even to that thesis. >> we like emerging markets in general. let america and asia of the two areas that we like the most. in latin america, which we have seen a lot of growth into the left for instance, which is let america, we've seen a lot of growth into that. within that we have seen faster growth in to peru, chile, mexico cheryl: the populations are growing? the middle-class. >> the rising middle class. the other part is the risk that those countries, are going down. because the inflation is lower.
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relatively speaking those countries are growing faster. now, brazil is coming from two or three years of underperformance, but brazil is now looking also cheaper for us. some people are expecting to look into brazil as another place where they can go. cheryl: brazil, china, india. are they still emerging markets. at this point. >> they are emerging markets because the cdc per capita is much lower than the market. so clearly a lot of interest because the growth is clearly higher. reports. so instead of going, they prefer to go into brazil. they get to the home market.
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cheryl: thank you very much. dennis: breaking news. a federal judge has approved the book pricing settlement between the government and three publishers. simon and schuster. harpercollins agreeing to the settlement pushed on them by the justice department. apple and a few key other publishers that did not settle faced trial in june 2013, and this is allegations that apple had conspired with big book publishers to fix prices. compete against amazon. some people worry that the settlement will basically give amazon its own monopoly. well as seeing a bit expected drop. let's go to sandra smith and today's trade. >> reporter: there was a very, very bullish will report out this morning pushing oil prices up the dollar 50, a couple percent higher. real skin in the game from the trading group.
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you were actually short while right now. feeling that it's pretty bullish and burgoyne to top hundred dollars. >> were coming up to some major resistance at $98. >> reporter: meaning that the size it's going to go. >> that's what i think. ninety-eight is a key level. the high speculative time because the u.s. dollar has been getting pounded based on what is going on. so we are getting a bounce in commodities that is telling us we are going to stay in these high levels we're coming and we would get some pressure with oversupplied market. cheryl: tell me what that means for gasoline prices. >> at the gasoline prices start to fall. i'm going to sit within the next couple of weeks to will see prices come back down into the trees. in chicago we are in a love worse. i think we start to see the trees cut some people are going to say we're on the verge of recovery. things start to get better. if we start to get some better
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economic numbers that's going to push oil prices higher. about $115. as of the case. >> i don't think so. you have to follow the patterns, the technical levels of the market. definitely at a resistance level . we will have a lot more issues. more speculation. more the rest on trade. >> what do you do from that traders pointed you? what is the trade at these levels? what are you hearing from other traders? >> they're looking for a spot to sell. we are looking to sell put buyers, also looking at straight futures sellers. we are looking to sell the market. looking for a market that is oversupplied. even that today's report was highly bullish. cheryl: had definitely very bullish. thank you for sharing. he shared his position with us. talking his position, but it's good to talk to somebody with some skin in the games.
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cheryl: absolutely. sandra smith and a thank you very much. your trade for the day. coming up after a quick commercial break. going to have more of today's rally. the ecb bond. neil cavuto live from the dnc. dennis: how is this for awkward. in north carolina furniture maker brought jobs back home, and invited into the white house, attended obama state of the union address. why is he now supporting mitt romney? you don't want to miss it.
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dennis: the down now four points above an almost five-year high. going to make it today. cheryl: the dow, the s&p and the nasdaq getting fresh new highs that we have not seen, frankly, in years. a big market rally. another hour of markets, and i'm in a great mood because the cowboys.